This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Holidays Came Early This Year for OncoMed and EnteroMedic

Bottom line, there is a chance the train can leave the station without you, but I believe if you sit on your hands and wait you will have an opportunity to buy shares under $2 soon. If you own shares now, you may want to consider taking some gains and repurchasing during a dip lower.

The top headline-capturing health care news was small-cap OncoMed Pharmaceuticals squeezing the daylights out of the 11% short interest when it opened higher by about 70% and continued to annihilate anyone who dared to stand in its path. TheStreet's Keris Alison Lahiff reported news of the price breakout Tuesday morning.

The company is partnering with $66 billion biotech giant Celgene (CELG), and it's reasonable to assume Tuesday's move is the first wave higher, although I wouldn't suggest chasing it. The companies will develop and market anti-cancer stem cell medicines. Celgene will have an exclusive option to license Demcizumab, its drug, if it wins regulatory approval. Demcizumab is in trials so investors shouldn't expect an immediate jump in revenue.

On the other hand, OncoMed will receive $177.25 million as an upfront payment from Celgene and Celgene agreed to purchase about 5% of OncoMed's stock. For OncoMed shareholders, the holidays arrived early this year. I think the stock has a lot of room to grow and $40 or more this time next year appears reasonable.

At the time of publication, Weinstein had no positions in securities mentioned.

Follow @RobertWeinstein

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ETRM $0.84 0.00%
OMED $13.57 0.00%
AAPL $95.03 0.21%
FB $116.73 0.00%
GOOG $691.02 0.00%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs